Revenue Cycle Management – Why Is It Important?

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Revenue Cycle

$320 Billion – that’s the 2020 financial loss predicted for the nation’s healthcare providers by the American Hospital Association. Because of their increased activity level, we assume they’re profitable, but they are facing increased financial pressure. Deferred elective procedures and patients’ postponing care have taken a toll on their revenues. In all institutions, Revenue Cycle Management (RCM), the process for managing the claim and revenue collection lifecycle, needs to step up.

RCM deals with a lot of complexities, including multiple payers, coding errors, and frequent payment denials. Not only are workflows arduous, but RCM must adjust to new care models. For example, managed and value-based care programs need better patient engagement. Also, higher deductibles have increased patient liabilities, further complicating the already challenging situation. Payment collection is becoming more collaborative for assisting and helping patients with financial hardship.

The remedy? RCM departments need to overhaul their communication infrastructure:

  • Turn to omnichannel for proactive communications and notifications with patients
  • Automate engagement workflows for appointment scheduling, tracking, and capturing accurate patient information
  • Modernize associate tools with better integration to Electronic Healthcare Record (EHR) systems
  • Leverage campaign management software to handle at scale communications between stakeholders and ensure revenue is collected on time

Healthcare RCM has become critical in a rapidly changing ecosystem. Healthcare providers need to embrace technology within their revenue cycle departments to strengthen processes while improving patient engagement and streamline collections.